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Every Trader Must Know

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This quote is from Victor Sperandeo, a well-respected trader and author. 

 

Here he emphasizes a crucial aspect of trading: emotional discipline

 

Many traders fall into the trap of letting their emotions dictate their decisions, which can lead to impulsive actions and deviation from well-planned strategies. 

 

Sperandeo's quote serves as a reminder that traders who master emotional discipline and stick to their trading plans are more likely to achieve consistent and long-term success in the financial markets.

31 Things Every trader Needs To Know

Trading is quite an adventure.

 

While there are great days, there are also days where you feel like you are living in your biggest nightmare.

 

In this post, I’d like to share a few pieces of advice, a few words of wisdom.

 

This is a spontaneous post. 

  1. Don’t trade when your mindset is compromised. If you do, you’re asking for trouble.

  2. If you blame the market or anyone else for your results, don’t expect to improve your game soon. This game requires 100% ownership!

  3. Approach stressful situations as challenges rather than threats. We are compelled to overcome challenges, so this little cognitive reframing will trick your mind into thinking that.

  4. Never compromise on risk management. Smaller losses are much easier to take and manage than larger ones.

  5. There’s no place for superstition in trading. Keep an open mind, and the market, luck, or fate won’t seem to be working against you.

  6. Aim to reinforce your discipline, patience, and execution a little bit daily, no matter how small that progress is. Maybe start rating those on a scale of 1 to 5.

  7. Moral support is important. Stay away from people who drag you down. Seek the company of those who lift you up, challenge you in the right ways, and help illuminate your path.

  8. Success starts with attitude. Complain less, appreciate more. (There’s always a reason to smile)

  9. Be reasonable in what you expect. In fact, don’t expect, just show up.

  10. You lost money recently? Okay -try not to worry too much. Money is just something you need in case you don’t die tomorrow. Enjoy the present moment and take it one day at a time. As long as you’re alive and keep showing up, you will always have opportunities to make it back.

  11. Be quick to archive losses in your mind, but never forget what they teach.

  12. In trading, chance can rule the day over a few trading sessions. That's why making trading a lifetime game is important instead of a get-rich-quick scheme. It’s all about the long haul.

  13. Trading is a game of inches. Learn to meditate, sleep more, eat healthier, exercise, reflect… those little details are nothing but little. They add up and contribute to your overall edge in the market.

  14. Understand that money is simply a tool. Don’t obsess over it. Focus on deploying it well.

  15. Don’t use social media to argue with people, hate on them, or even compare yourself to them. You have better things to do, trust me. Use those platforms to learn something or to do good.

  16. Both favorable and adverse events come in your life as lessons. Accept those lessons. Welcome them.

  17. You must learn to be happy within yourself, right where you are, and with what you have, regardless of what happens in the market. Invariably, your trading results will reflect that untroubled state of being.

  18. If you want meaning in your life, tie it to a goal that’s difficult to achieve, and keep striving.

  19. The market is there to show you some harsh truths about yourself that you must come to terms with.

  20. Your focus matters. Whatever you really (really!) want, you get. Whatever you really (really!) don't want, you also get. This is not some metaphysical claim; it's just that whenever you focus on something, you tend to attract it into your life.

  21. Working hard doesn't mean you are productive. And being productive doesn't mean you are effective. Learn to work smart.

  22. If fear rules your trading, reduce your size. You'll have all your time to make money. Learn how to handle yourself first.

  23. Focus on making money overall, over many trades, as opposed to this day, week, or month. And organize your life and finances around that. Trading has more to do with planning than must people think.

  24. Trading requires a complete reshuffle of how you think and approach your life. If you're stuck in a particular way of thinking your whole life, you're not going to get anywhere. You have to want to improve yourself as a person.

  25. In many ways, direction and consistency are so much more important than speed. Many end up nowhere by trying to get somewhere fast.

  26. There are so many variables behind price action that you must realize that your analysis and predictions will inevitably fail. Embrace the uncertainty. 

  27. Get comfortable with failure. Don't bring ego into this and take things personally. This is not about you. Learn from failures. Try again. That's the secret: You keep trying until you hit something.

  28. If you get discouraged, go back to the big picture. Why you started. It’s a place of excitement. That's how you get through.

  29. If you’re a beginner, understand that you won’t be a beginner forever. Your years as a beginner are the most formative ones. The experiences you’re going through will stay with you and shape the expert you’ll eventually become. So, appreciate where you're at and focus on doing things well.

  30. Trading is 1% theory and 99% practice. No matter how many books you read on it, you will never get to do it successfully until you’re in the field, getting your butt kicked by the market and learning along the way. No book or course will teach you that because you need to experience it yourself. 

  31. Whenever you’re hesitating to put a trade on, just remember that, win or lose, this is a crucial piece of experience that you need to develop into the trader you wish to become.

That's it -31 things every trader needs to know.

Hope you enjoyed it.

And as always, stay insightful, stay resilient.

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